Pragma Quarterly Update
Welcome to Pragma's third quarterly update of 2021.
The return to the office for significant portions of the working population, and the return of international travel for some, has proved a fascinating topic from a multitude of perspectives. Not only is the ability to travel for work and leisure uneven globally, but the mindset of individuals and whether they choose to reengage with previously established behaviours is not uniform and varies across geography, gender, socio-economic group or age profile.
Whilst this is proving understandably problematic from an investment and operational point of view, we are revelling in the opportunity to assist our clients in both understanding the potential impact of changing behaviours and in playing an active part in formulating the response to what has been one of the most interesting anthropological events in recent history.
The Pragma team have been actively engaged in assisting our clients with the next stage of response to changing work and travel dynamics, with particular focus on assisting on travel and office-led developments. With our services able to assist across the project lifecycle, we have been leading projects to advise on a range of client questions, from the macro around what to buy and where to buy, how much space to develop and how to position an asset, right the way down to micro elements regarding occupier mix and performance, and the facilities required to optimise a space’s appeal and performance.
Collaboration with our architectural and design-focussed colleagues at Benoy and Holmes Wood continues, with joint instructions underway from London to Singapore via Bangkok whilst our data-led design approach is gaining strong traction in the optimisation and repurposing of space across the UK.
With the ongoing recovery from the pandemic still in its infancy, may we take this opportunity to wish you and your teams continued good health and success in achieving the work/life and physical/digital balance that benefits us all!
Please see below for updates on our latest travel and property work.
Andrew McVicker
Director
Pragma Travel News
The return to pre-Covid passenger levels
Travel restrictions continue to impact the travel sector's recovery, but with vaccine programmes accelerating across the globe, people are once again looking to broaden their horizons. Travel infrastructure, operating with spare capacity during the pandemic, must now prepare for the influx of travellers once again, and Pragma have been working with asset owners around the world, helping them with their upgrades and improvements.
In Russia we’re working on one of the world’s largest train networks, assisting with the upgrade of the stations across the country. With such a diverse range of stations, from bustling stations in the capital through to small provincial stations, we are creating an offer appropriate to the stations' footfall and catchment.
In the Middle East we continue to support one of the regions airport hubs, already having helped to define the commercial mix for the terminal. One of the challenges we’re assisting with is the e-commerce opportunity, something that many airports have historically not invested in exploring.
In the US domestic passenger numbers have almost reached their pre-pandemic figures, and airports are gearing up to accommodate the future passenger volumes. We have been helping three airports as they look to modernise their infrastructure in preparation for the anticipated demand.
Pragma Property News
Mixed-use development strategies
With the strength of covid-related restrictions easing throughout the quarter, Pragma have been working with clients to assess the potential impacts changing working practices, affecting strategies for both office space directly and the commercial strategy for mixed-use developments.
In central London, Pragma – in conjunction with our sister company Benoy – has been assisting a client that has recently purchased a 7-storey office block and needs to determine the scale of physical intervention and investment necessary to optimise long-term return on investment. Pragma provided a detailed review into the condition of the London office market – including a review of rents, new developments and occupation by zone – and carried out expert interviews to consider the key factors driving landlord, developer and occupier decision-making. Pragma's research allowed for a detailed view of the practical interventions required to be presented and, working alongside Benoy, allowed for these to be fully realised through sketches, drawings and plans to shape future development plans. Our client is currently reviewing recommendations with a view to enacting imminently.
In Lambeth, Pragma has been working for Stanhope on a proposed 5.5 acre mixed-use development adjacent to St Thomas’ Hospital. Pragma were commissioned to provide a retail capacity study to help shape the quantum, location, use type and phasing of commercial space in what will become, when completed, an integral and hugely beneficial part of the London growth economy and local community. You can read more about Pragma’s work at Royal Street here.